Healthcare Wellness Plan Fraud | P.O.W.E.R.

Active Investigation

Exposing Healthcare Wellness Plan Fraud.
Protecting Workers. Demanding Accountability.

Fraudulent staffing agencies are replacing legitimate workers' compensation insurance with sham healthcare "wellness plans" — leaving workers unprotected and taxpayers on the hook.

Report Healthcare Fraud Learn What's at Stake

The Problem

What Is Wellness Plan Healthcare Fraud?

Workers

Workers Get Sham Coverage

Some staffing agencies replace state-mandated workers' compensation insurance with low-cost "wellness plans" or "occupational accident plans." These plans look real — but they don't cover workplace injuries, offer no legal protections, and leave workers responsible for their own medical bills after on-the-job accidents.

Report a Fraudulent Wellness Plan

Employers

Employers Think They're Covered

Client companies hiring through these agencies often have no idea the staffing firm isn't carrying real workers' comp. When a worker gets injured on their site, the client company can face lawsuits, OSHA violations, and massive liability — all because they trusted a fraudulent operator.

Learn How to Verify Coverage

California

California Loses Billions

Every fraudulent wellness plan means unpaid workers' comp premiums, lost tax revenue, and increased burden on California's public safety net. Legitimate businesses that play by the rules are undercut by operators who cheat the system.

See the Full Impact

Federal Action

Federal Agencies Are Watching

The IRS, Department of Labor, and state insurance regulators are all investigating the rise of fraudulent wellness plans. Operators caught using these schemes face criminal charges, back taxes, and permanent debarment.

Report Fraud to P.O.W.E.R.

The Scheme

How the Wellness Plan Fraud Scheme Works

A step-by-step breakdown of how fraudulent staffing agencies exploit healthcare wellness plans.

01

The Setup

A staffing agency registers as a legitimate business and begins placing temporary workers at client companies. They promise full compliance, including workers' compensation coverage.

02

The Swap

Instead of purchasing legitimate workers' compensation insurance — which is legally required in California — the agency enrolls workers into a low-cost "healthcare wellness plan" or "occupational accident plan." These plans cost a fraction of real workers' comp premiums.

03

The Illusion

Workers receive cards and paperwork that look like real insurance. Client companies receive Certificates of Insurance that appear legitimate. Nobody questions the coverage — until someone gets hurt.

04

The Fallout

When a worker is injured on the job, they discover their "plan" doesn't cover workplace injuries. There's no workers' comp claim to file. Medical bills pile up. The worker has no income protection. The client company faces liability. The staffing agency pockets the difference.

Our Response

P.O.W.E.R.'s Response to Healthcare Wellness Plan Fraud

We're fighting back on every front.

Pillar 01

Expose

P.O.W.E.R. is actively identifying staffing agencies using fraudulent wellness plans in place of workers' compensation. We investigate tips, verify insurance certificates, and publish findings.

Pillar 02

Enforce

We refer cases to the California Department of Insurance, DIR, OSHA, the IRS, and the Department of Labor. We support litigation against fraudulent operators and advocate for criminal prosecution.

Pillar 03

Educate

We provide resources for workers to identify fake coverage, for employers to verify staffing agency compliance, and for insurance professionals to spot red flags in certificates.

Pillar 04

Enact

P.O.W.E.R. supports the SAFE Act (SB 1032) which requires mandatory annual registration and verified workers' compensation for all temporary staffing agencies — eliminating the loophole that allows wellness plan fraud to thrive.

Take Action

Report Suspected Wellness Plan Fraud to P.O.W.E.R.

Suspect a business is using an illegal or fraudulent healthcare wellness plan? Report it.

Step 1 — Report to P.O.W.E.R.

Submit your report using the form. All reports are confidential. You can report anonymously.

Step 2 — Report to Proper Authorities

Using the information below, report suspected Healthcare Wellness Plan fraud to the appropriate agencies.

Reporting Agencies

Agency	What They Handle	Contact
CA Dept. of Insurance	Insurance fraud, fake certificates	insurance.ca.gov
DIR — Labor Standards	Workers' comp violations, wage theft	dir.ca.gov
OSHA	Workplace safety violations	osha.gov
IRS	Tax fraud, unreported payroll	irs.gov/fraud
Dept. of Labor	Federal labor law violations	dol.gov